DENVER, November 27 /CNW/ - Apollo Gold Corporation ("Apollo" or the
"Company") is pleased to announce that the Company has entered into a lease
agreement ("Lease") with the Schumacher Estate for the surface and mineral
rights of parcels 16262, 16265 and 16266, approximately 319 acres, located in
the Township of Hislop, Ontario, Canada, which parcels are known as the
Schumacher property (the "Schumacher Property") is located to the south-east
of Apollo's Black Fox project property.
The Lease requires that Apollo incur a minimum of CDN$250,000 in
exploration expenditures in the first year of the Lease and a minimum of
CDN$1,000,000 of exploration expenditures in the first two years of the Lease.
The initial term of the Lease is for 20 years and Apollo, at its option, may
extend for further periods of 20 years each. There is a 3% royalty on net
smelter returns ("NSR") on the leased property.
The Schumacher Property was leased to and partially explored in the past,
first by Hemlo Gold Mines Inc. and then by Battle Mountain Gold Company after
it merged with Hemlo Gold Mines Inc. in 1996. Since the 2001 merger between
Battle Mountain Gold Company and Newmont Mining Corporation, the lease on the
Schumacher Property has been held by Newmont Mining. From past exploration
reports submitted to the Schumacher Estate, drilling along the contact zone in
the Destor Porcupine Trend was encouraging and initial gold mineralization
calculations were reported at 1,163,897 tonnes grading 6.4 grams per tonne.
(This historical gold mineralization calculation at the Schumacher Property
was determined by Battle Mountain Gold Company prior to the implementation of
Canadian National Instrument 43-101 and are not in compliance with guidelines
thereunder or the United States Securities and Exchange Commission guidelines
and therefore should not be relied upon). This gold zone appears to be close
to the surface and could be susceptible to open pit mining methods. Deeper
core holes indicated that the gold mineralization continued at depth.
As part of the minimum of CDN$1,000,000 in exploration expenditures that
Apollo is required to incur within the first two years of the Lease, Apollo
will attempt to confirm the previous third party drilling results. Starting in
December 2007, Apollo intends to implement an initial surface drilling
program, of approximately 3,000 metres which will consist of (a) confirmation
core holes of the previously drilled exploration holes and (b) new core holes
to expand the exploration data base.
In addition to the Lease with the Schumacher Estate, Apollo has completed
the acquisition of a property (the "Jensen Property") from the Jensen Estate,
which is also located in Hislop Township, Ontario, Canada. The Jensen Property
is comprised of 153 acres and it is contiguous with the north-west boundary of
Apollo's Black Fox project. The Jensen Property has not been previously
explored. However, Apollo's drilling results along the Destor Porcupine Fault
structure in the northwestern portion of our property at Black Fox indicate
that there is potential for the fault system to continue to trend to the
northwest and potentially project onto this newly acquired property. The
Jensen Estate retains a 3% NSR royalty on production from the property. Apollo
has the first right of refusal on transfers by the Jensen Estate of the 3%
royalty and also has the option to purchase 1.5% of the NSR royalty at any
time in the future for CDN$1,000,000.
Apollo's Senior Vice President Exploration and Development, Richard
(Dick) Nanna, stated that, "With the leasing of the Schumacher Property and
the purchase of the Jensen Property, we have significantly expanded the
exploration potential at our Black Fox project. These two properties will
increase our strike length of the Destor Porcupine Fault Zone from 2.3 kms to
4.9 kms in length. The previous drilling completed on the Schumacher Property
will give us a good head start in further understanding the geological
potential of our project and guide our exploration work and drilling program."
This press release has been reviewed and approved by Richard Nanna,
Professional Geologist, Apollo's Senior Vice-President, Exploration and
Development. Mr. Nanna is designated a "Qualified Person" under NI 43-101.
Apollo Gold Corporation
Apollo is a gold mining and exploration company that operates the Montana
Tunnels mine, which is a 50% joint venture with Elkhorn Tunnels, LLC, the
Black Fox advanced stage development project in Ontario, Canada, and the
Huizopa project, an early stage exploration project in the Sierra Madres in
This press release includes "Forward-Looking Statements" within the
meaning of section 21E of the United States Securities Exchange Act of 1934,
as amended. Forward-looking statements can be identified by the use of words
such as "may," "should," "expects," "plans," "anticipates," "believes,"
"estimates," "predicts," "intends," "continue," or the negative of such terms,
or other comparable terminology. All statements regarding Apollo's planned
drilling program at the Schumacher Property and estimates of mineralization,
reserves and resources of the Black Fox project, the Schumacher Property or
the Jensen Property, the geology and exploration prospects of the Schumacher
or the Jensen Property and Apollo's ability to demonstrate the potential for
the fault system to continue to trend to the north-west of the Jensen
Property, are forward-looking statements that involve various risks and
uncertainties. There can be no assurance that such statements will prove to be
accurate and actual results and future events could differ materially from
those anticipated in such statements. Important factors that could cause
actual results to differ materially from these forward-looking statements
include: the results of independent Canada NI 43-101 reports, the outcome of
assays and additional exploration sampling and drilling efforts; variations in
ore grade, mining, or processing problems or issues, and other factors
disclosed under the heading "Risk Factors" and elsewhere in Apollo documents
filed from time to time with the Toronto Stock Exchange, The American Stock
Exchange, The United States Securities and Exchange Commission and other
regulatory authorities. All forward-looking statements included in this press
release are based on information available to Apollo on the date hereof.
Apollo assumes no obligation to update any forward-looking statements.
For further information:
For further information: For Apollo Gold Corporation Marlene Matsuoka,
720-886-9656 ext. 217 (Investor Relations) Toll Free: 1-877-465-3484